
New Delhi, March 18: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the construction of a 4-lane access-controlled national highway from Barabanki to Bahraich in Uttar Pradesh. The project will cost approximately ₹6,969.04 crores and will develop the 101.515-kilometer stretch of NH-927 under the Hybrid Annuity Model (HAM).
Upgrading the Barabanki-Bahraich section of NH-927 will address several technical issues currently affecting the roads in the area. Presently, the region faces challenges such as sharp turns, poor geometric design, and traffic congestion in populated areas. The new 4-lane access-controlled road, along with continuous service roads, is expected to significantly mitigate these problems.
According to an official statement, the highway will bypass major towns and villages, enhancing the average speed of vehicles and reducing travel time to approximately one hour. Additionally, road safety will improve, fuel savings will be realized, and operational costs for vehicles will decrease. This development is also expected to promote economic and social growth in the region.
The project will provide better connectivity to several important economic, social, and logistics hubs in the state. Once upgraded, this corridor will connect three economic centers, two social centers, and twelve logistics centers, facilitating improved multimodal connectivity to the Rupaidiah Land Port and airports, thereby accelerating the movement of goods and passengers throughout the area.
Upon completion, this road will emerge as a crucial corridor for trade and transit between India and Nepal. It will particularly enhance trade through the Nepalgunj border and ease access to the Rupaidiah Land Port, improving connectivity for remote districts like Bahraich and Shravasti.
This initiative will strengthen economic and logistics nodes under the PM Gati Shakti scheme, boosting agricultural trade, tourism, cross-border commerce, and regional investment. The government has approved this project under the Hybrid Annuity Model (HAM), a public-private partnership (PPP) model where 40% of the cost is borne by the government and 60% by the private sector. This structure alleviates financial pressure on developers while providing them with stable returns, with the government retaining revenue-related risks.
This marks the second major highway project approved by the Cabinet Committee on Economic Affairs this month. Earlier, on March 10, a new road connectivity project worth ₹3,630.77 crores was approved to connect to the Noida International Airport.
The approximately 31.42-kilometer corridor will provide direct and swift connectivity from South Delhi, Faridabad, and Gurugram to Jewar International Airport, significantly benefiting economic activities and logistics in the National Capital Region (NCR).




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